UPDATE: Morgan Stanley Initiates Coverage on Covanta Holding


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


According to a research report published this morning, Morgan Stanley has initiated Covanta Holding (NYSE: CVA) with an Equal-weight rating and $17 PT.In the report, Morgan Stanley said, "Covanta owns and operates 46 Energy from Waste (EfW) facilities that process municipal solid waste into electricity and steam. It has a solid US business and reasonable growth opportunities in Europe 3-5 years from today. Covanta's large capital return program demonstrates its solid balance sheet, but it also highlights limited capital deployment opportunities. CVA looks fairly priced today. Our $17 fair value is equal to 8.1x 2012e EV/EBITDA and suggests just 5% upside over the next 12 months."Covanta Holding closed Friday at $16.24.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: Analyst ColorInitiationAnalyst RatingsMorgan Stanley